Financial Analysis Modeling and Forecasting

Why Attend

Financial professionals are often asked to provide analysis and projections of finances to help management make decisions. By attending this course, you will be able to effectively prepare and build financial analysis models, understand and analyze the time value of money, and prepare forecasted financial statements. You’ll gain practical skills in developing robust Excel models to evaluate investment opportunities, calculate net present value, and perform sensitivity analysis. The curriculum covers essential techniques for projecting revenue growth, estimating expenses, and modeling cash flows under various scenarios. Additionally, you’ll learn to identify potential risks and communicate your findings clearly to stakeholders, ensuring that your financial insights directly support strategic business planning and resource allocation.

Course Registration

Course Methodology The course is a hands-on workshop that applies MS Excel to model financial analysis and forecasting through different exercises and case studies. Course Objectives By the end of the course, participants will be able to:

Interpret organizational financial performance and position using financial ratios
Analyze and advise on the health of the cash flow statement
Evaluate future cash flows by utilizing Microsoft Excel time value of money functions
Apply advanced MS Excel modeling tools and functions in financial projections models
Build a financial forecasting model for the financial statements' projections

Target Audience Financial controllers, analysts, finance and accounting managers, supervisors, and finance professionals who need to interpret and analyze financial statements and use them to create financial forecast models in their organizations. Target Competencies

Understanding and performing financial analysis
Performing vertical, horizontal, and trend analysis
Financial forecasting
Modeling financial statements
Applying Excel functions and tools
Building Dynamic Financial Models

Financial Analysis Techniques

Horizontal, trend analysis, and growth
Vertical analysis and strategy
Liquidity analysis
Activity analysis
Solvency analysis
Profitability analysis
Market and valuation analysis
DuPont analysis: The three-step and five-step models
Limitation of ratio analysis

Cash Flow Statement: Interpretation and Ratio Analysis

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash flow patterns
Cash-flow-related ratios
- Quality of earnings
- Financial management
- Mandatory cash flow
- Discretionary cash flow

Financial Calculations in MS Excel

The importance of time value of money
Present Value (PV)
Net Present Value (NPV)
Internal Rate of Return (IRR)
Using XNPV and XIRR
Effective yields and returns

Model Construction Techniques Using Excel

Data tables
Goal seek
Spinner data modeling
List box data modeling
Option box data modeling

Modeling Projected Financial Statements

Micro and macro factors
Forecasting sales
- Estimating market demand
- Estimating company demand
- Developing sales forecast
Forecasting cost of sales
Forecasting operating expenses
Forecasting key assets and liabilities accounts
Modeling the income statement
Modeling the balance sheet
Modeling the cash flow statement

Financial Analysis Modeling and Forecasting

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